Bank Universal upgrades its computer system

Bank Universal upgrades its computer system

JAKARTA (JP): Bank Universal purchased a US$2 million computer
system from PT USI, the local partner of United States-based IBM,
to improve its customer service, a senior executive at the bank
said.

Universal's vice president, Terry Ng, said on Tuesday Bank
Universal's transactions had doubled in volume over the last two
years to $1.8 million.

"The new system will accommodate this increased work load."

Terry also said Bank Universal's third-party deposits
increased by 61 percent to Rp 7.6 trillion (about $863 million)
in 1998.

Bank Universal is one of nine private domestic banks scheduled
to be recapitalized under the government's recapitalization
program. Under the program, the banks' owners are required to
provide 20 percent of the recapitalization funding, while the
remaining 80 percent is provided by the government.

Bank president Stephen Z. Satyahadi said Bank Universal would
receive at least Rp 500 billion in funds from its major
shareholder, PT Astra International, to enable it to join the
recapitalization program.

Stephen said the bank would need some Rp 2.4 trillion to boost
its capital adequacy ratio (CAR) to the government-required 4
percent.

"The money needed for the recapitalization of Bank Universal
is relatively little for parent company PT Astra International.
In fact, PT Astra International has rescheduled part of its debt
for an additional one to three years," Stephen said when asked if
the automotive giant could meet its commitment to inject fresh
equity into the bank given its debt problem.

Terry said the government's final decision on the amount of
funds Bank Universal needed for recapitalization would be
disclosed on April 15

"We are now being audited again by foreign auditors who are
basing their audit on the revised terms and conditions issued by
the government last Wednesday."

Terry said the result of the current audit would determine the
cost of recapitalizing Bank Universal.

Terry said by April 21 the nine banks scheduled for
recapitalization, including Bank Universal, would sign a
recapitalization agreement.

After signing the agreement, Bank Universal will have a rights
issue in May, according to Terry.

PT Astra International controls a 83.74 percent stake in Bank
Universal. PT Prahabima holds a 3.69 percent stake in the bank
and the public owns the remaining 12.57 percent. (02)